Correlation Between PT Bank and AnalytixInsight
Can any of the company-specific risk be diversified away by investing in both PT Bank and AnalytixInsight at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Bank and AnalytixInsight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and AnalytixInsight, you can compare the effects of market volatilities on PT Bank and AnalytixInsight and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Bank with a short position of AnalytixInsight. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and AnalytixInsight.
Diversification Opportunities for PT Bank and AnalytixInsight
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and AnalytixInsight is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and AnalytixInsight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnalytixInsight and PT Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Bank Rakyat are associated (or correlated) with AnalytixInsight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnalytixInsight has no effect on the direction of PT Bank i.e., PT Bank and AnalytixInsight go up and down completely randomly.
Pair Corralation between PT Bank and AnalytixInsight
Assuming the 90 days horizon PT Bank is expected to generate 14.97 times less return on investment than AnalytixInsight. But when comparing it to its historical volatility, PT Bank Rakyat is 2.32 times less risky than AnalytixInsight. It trades about 0.04 of its potential returns per unit of risk. AnalytixInsight is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1.40 in AnalytixInsight on October 23, 2024 and sell it today you would earn a total of 1.80 from holding AnalytixInsight or generate 128.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
PT Bank Rakyat vs. AnalytixInsight
Performance |
| Timeline |
| PT Bank Rakyat |
| AnalytixInsight |
PT Bank and AnalytixInsight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and AnalytixInsight
The main advantage of trading using opposite PT Bank and AnalytixInsight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, AnalytixInsight can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AnalytixInsight will offset losses from the drop in AnalytixInsight's long position.| PT Bank vs. Bank Mandiri Persero | PT Bank vs. Piraeus Bank SA | PT Bank vs. Eurobank Ergasias Services | PT Bank vs. Kasikornbank Public Co |
| AnalytixInsight vs. Ackroo Inc | AnalytixInsight vs. CurrentC Power | AnalytixInsight vs. Auddia Inc | AnalytixInsight vs. Agent Information Software |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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